Cap 1 showing their true colors...

[aplast]

So yesterday I got a letter in the mail from Cap1 stating that my rewards structure is changing on my no hassle rewards. (the one before the cash rewards card came out) basically its 2% gas & groceries and 1% everywhere else. I know this is not a rewards card to brag about or anything, but I was successful with the Executive Office and have 3500 CL with them. On Feb 13th 2013 it will be 1% CB on everything. How lame!! I think I am going to Sock Drawer this card, but keep it open for util purposes. I had to rant as I thought they might be turning around the customer service and features, but it looks like they are going to stick with how they do business - Lending to sub prime borrowers with low CLs to maximize profit and keep risk low. They helped me in my time of need and I am thankful for that, but now I think this was the last straw.

[navigatethis12]

Other companies will do the same thing when a card is phased out. There are probably very few left of the old Chase Freedom cards with 3% on your most spent category. American Express will most likely get rid of the old Blue Cash (5% on drugstores, gasoline, and groceries after 6500 spend) as well.

[FinStar]

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@navigatethis12 wrote:

Other companies will do the same thing when a card is phased out. There are probably very few left of the old Chase Freedom cards with 3% on your most spent category. American Express will most likely get rid of the old Blue Cash (5% on drugstores, gasoline, and groceries after 6500 spend) as well.

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This ^ and the fact that lenders have the right to change their rewards structure and conditions at any time (it is clear as day in their card agreement).  Changes can be dictated by market conditions or products being phased out in favor of other profitable avenues.

Yes, there is a substantial population that Capital One underwrites for its less-than-favorable credit products.  However, what is most often overlooked as a large institution, they also manage a very solid portfolio of prime borrowers.

[bs6054]

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@navigatethis12 wrote:

Other companies will do the same thing when a card is phased out. There are probably very few left of the old Chase Freedom cards with 3% on your most spent category. American Express will most likely get rid of the old Blue Cash (5% on drugstores, gasoline, and groceries after 6500 spend) as well.

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Yes, two cards from issuers highly regarded here did that already:  Amex BCE/BCP, cap added on grocery rewards in Oct, PenFed Cash Rewards, dropped rewards on non-gas spending from 1% to 0.25% 

[SwampSystems]

Mine changed as well. Previously I received 1% back on all purchases + a 25% annual bonus; under the new structure I will receive 1.25% on all purchases instead.

Still longing for the Jimmy Fallon card though.

[Wolf3]

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@aplast wrote:

So yesterday I got a letter in the mail from Cap1 stating that my rewards structure is changing on my no hassle rewards. (the one before the cash rewards card came out) basically its 2% gas & groceries and 1% everywhere else. I know this is not a rewards card to brag about or anything, but I was successful with the Executive Office and have 3500 CL with them. On Feb 13th 2013 it will be 1% CB on everything. How lame!! I think I am going to Sock Drawer this card, but keep it open for util purposes. I had to rant as I thought they might be turning around the customer service and features, but it looks like they are going to stick with how they do business - Lending to sub prime borrowers with low CLs to maximize profit and keep risk low. They helped me in my time of need and I am thankful for that, but now I think this was the last straw.

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Sad to hear that, since I have the same card.

[BrickTime]

I got the very same letter today. I have twice received offers from them to PC to the new Jimmy Fallon card. Maybe I will just do that now. Obviously that is what they want by slashing the No Hassle Rewards to 1%.

[scarrollprint]

My letter said I was such a great customer that they are bumping my cash back to 1.25% on all purchases (even worded it to sound like I wasn't getting any cash back on some purchases now).

Not such a great deal since I really only used the card for gas and groceries.